Four out of five manufacturers freezing pay

Four out of five manufacturers are implementing pay freezes, according to the latest figures from the Engineering Employers Federation (EEF).

Research shows that for the three months to the end of October, the number of manufacturers that have frozen pay rose slightly to just over four out of five companies, the highest level reported since EEF's survey began in 1987.

The pay freezes are likely to impact upon those with high debts, and add to the number of people seeking to get credit, at a time when money is short.

David Yeandle, EEF head of employment policy, said: "These figures highlight the fact that for many companies life remains extremely tough.

"The need to take all measures necessary to control costs and retain skilled staff remains a priority."

Figures from the Office for National Statistics show that average earnings including bonuses rose by 1.6 per cent in the year to August 2009, down from the July rate of 1.8.